International Journal of Management and Economics

authors
Ugwu Hope Ifeyinwa, Nkechi T Ofor

abstract
This study investigated the effect of on corporate governance on bankruptcy deposit money banks quoted on Nigeria stock exchange. Specifically, the study; determine the relationship between board size and bankruptcy in banking sector using Altman bankruptcy prediction model; ascertain the relationship between audit tenure, Independence of Board of director, frequency of board meeting. Based on the data analysed, the following findings were summarized that board size has a negative effect on Altman bankruptcy predicting model which has significant impact on deposit money banks in Nigeria. While audit tenure has a negative effect on Altman bankruptcy predicting model but not statistically significant on deposit money banks in Nigeria. Another finding is that board of director’s independency and frequency of board meeting has a positive effect on Altman bankruptcy predicting model and is statistically significant on deposit money banks in Nigeria. since the board of director serves as internal control mechanism in the corporate governance, banks policy makers should provide adequate regulations on the specific number of board to be working with, hence, larger board is likely to reduce the probability of bankruptcy as they bring wider knowledge and better expertise to the bank.